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Thursday, August 17, 2017

ONGC aims to double production in next 5-6 years: CMD

ONGC CMD DK Sarraf

MAHARATNA oil major Oil and Natural Gas Corporation (ONGC) is aiming to double its oil production in the next five to six years, says Dinesh K. Sarraf, CMD. He said this while addressing a gathering during the Independence Day celebrations.
In the past three years, despite oil prices declining to record lows, there has been a sustained production through incremental inputs, and new... investment decisions that were taken ensured sustained volumes and financial growth.
“Share of gas in India’s energy basket is set to increase from 6.5 per cent to 15 per cent. The government is focused on making our economy gas-based,” he said.
Sarraf said many of the new projects are gas-based. “We have flagged off 17 production related projects with a CAPEX of Rs. 76,000 crore in the last three years. These projects would produce 69 MMT of crude oil and 118 BCM of Natural Gas during their profile period. Cumulative production from these projects would peak during 2020-21 at 6.65 MMT of crude and 13.38 BCM of gas which is 45 per cent of our oil and gas standalone production during FY’17”, he said. ONGC’s flagship project – development of Cluster-2 of KG-DWN-98/2, continues to be on stream; all activities are going on at fast pace, Sarraf further said. The project would produce about 25 MMT of oil and 50 BCM of gas with peak production of 4 MMT of oil and 5.5 BCM of gas. This would be equivalent to 17 per cent and 24 per cent of current standalone oil and gas production respectively– from a single project.
“During the last three financial years, we have completed 15 production related projects (including 8 brownfield and 7 greenfield) with capital investment of Rs. 54,000 crore. These would produce 87 MMT of crude and 56 BCM of gas during their profile period,” he said. During FY’17, the ONGC produced 5 MMT of crude and 3.5 BCM of gas from these projects, which is 22 per cent and 16 per cent of its standalone crude and gas production respectively.
On the onshore assets front, the ONGC reversed the declining trend in production, persisting for several years, by registering crude production at 5.97 MMT in FY’17 as against 5.82 MMT in FY’16.